Preliminary Results 2015: Presentation

preliminary results 2015
2 March 2016
Pierre-Marie De Leener (CEO)
Georg Harrasser (COO)
Matthew Russell (CFO)
Important Notice
►
All numbers for full year 2015
on a preliminary basis
►
Audited full year financial report
to be published on 31 March 2016
►
Please also note the full disclaimer
on page 36 of this presentation
Page 2
Contents
►
Highlights and key figures 2015
►
Operating results by reporting segments
►
Consolidated financial report
►
Outlook 2016
Analyst Presentation
Page 3
New Management
• Chairman Board of Directors of
Braas Monier since 2014
• Former CEO of SigmaKalon
Group and Executive VP, PPG
Industries, Pittsburgh (USA)
Analyst Presentation
• With Braas Monier since 1993
• Various leadership positions incl
CEO Italy and CEO Asia Pacific
• Since 2013: Regional President
Centr., North. & East. Europe
►
New Management
since 15 January 2016
►
Internal solution
ensures high continuity
• CFO of Braas Monier since 2013
• Before: Various management
positions at Hanson PLC and
HeidelbergCement AG
Page 4
Financial highlights
Analyst Presentation
Page 5
Volumes / Revenues / Operating EBITDA / Net income
Page 6
Executing our growth strategy
Analyst Presentation
Page 7
Addressable Roofing Market with
uneven development in 2015
Market
penetration
►
►
►
►
►
Growth in the UK, the
Netherlands as well
as in Scandinavia and
parts of Eastern
Europe
Few, small countries
with flattish developm.
More difficult
development in
Germany and Austria
Spain and Portugal
not growing yet
Declines in Italy more
pronounced than in
France
Legend: Market development 2015 compared to 2014
> 1%
-1% < 0 < 1%
< -1%
Page 8
We have done better than market development
in 75% of our Top European Markets
►
Market
penetration
►
►

x





x



x
Successful roll-out of
„Top Line Growth‟ initiatives
Outperformance in almost
all major European markets
Group-wide recovery of
market share in countries
accounting for 70% of
revenues
Exceptions:
► Italy:
strict internal credit policy
► Czech Republic:
strict pricing targets
► Norway:
increased competition for
concrete tiles
Page 9
Value-accretive bolt-on M&A
Consolidation &
new geographies
&
Muto &
Tegolaia
Analyst Presentation
Page 10
►
New products &
new markets
►
Concrete Tile with 40%
lower weight..
.. but with high strength,
long-term aesthetics and
frost resistance
Key advantages:
► Roofer: less weight to lift
► Good for the health
► and faster laying
► Lower transport cost
► Enables us to enter new
segment of light roof
structures
►
Analyst Presentation
Depending on
experience and
feedback gathered in
Denmark, further market
entries considered in
2016 and 2017
Page 11
WrapTec further rolled-out in 2015
►
Following successful market
entry in Denmark, WrapTec was
further rolled-out in 2015 in the
UK, Sweden and Norway
►
First projects successfully
carried out in Germany
Negotiations with big players
in the US market during the
IEX fair in Chicago
Possible launch in BeNeLux
in cooperation with a leading
international distributor
Adjacencies
►
►
►
Analyst Presentation
In 2017, WrapTec is expected
to generate a low to mid singledigit million Euro amount of
revenues and to contribute
positively to Operating EBITDA
Page 12
Contents
►
Highlights and key figures 2015
►
Operating results by reporting segments
►
Consolidated financial report
►
Outlook 2016
Analyst Presentation
Page 13
Western Europe
►
Significant volume growth in the UK and the Netherlands
as well as increased component sales
►
French volumes still weak, but with improving trend
throughout the year, ending flat in Q4
►
Operating EBITDA margin substantially lifted to 15.1%
due to improved price levels and higher component sales
in the UK and the Netherlands
Analyst Presentation
Page 14
Central, Northern & Eastern Europe
►
Volume improved throughout the year and resulted in a
volume increase in Q4 of 7.3% versus 1.7% for FY 2015
►
Revenue growth of 0.5% despite negative FX effects
(Russia/Scandinavia) based on like-for-like growth of 1.9%
►
Operating EBITDA was virtually stable at EUR 72.2 m
with marginally declined Operating EBITDA margin of
16.8% in 2015 versus 16.9% the year before
Analyst Presentation
Page 15
Southern Europe
►
Strong revenue increase by 16.8% due to the
first time inclusion of Cobert in Spain and Portugal
►
Like-for-like revenues in 2015 (-1.7%) were burdened
by on-going volume declines in Italy
►
Negative volume effect was partially compensated for
by positive pricing and strict cost management
►
Operating EBITDA margin kept at high level of 17.1%
despite the dilutive effect of first time inclusion of Cobert
Analyst Presentation
Page 16
Asia & Africa
►
Revenues declined by 3.9% (l-f-l by 10.3%) in 2015 due to
strong volume reductions in Malaysia and in China
►
Pull-forward effects in Malaysia ahead of VAT introduction
in April and political instability weighed on 2015
►
Positive currency effects of EUR 7.2 m in 2015
►
Operating EBITDA decline of 11.6% was limited
by additional fixed cost savings with measures
Analyst Presentation
Page 17
Chimneys & Energy Systems
►
Volumes declined by 4.6% and therefore less than the
overall markets, while pricing was generally positive
►
Revenue decline of 1.5% included stopped operations in
France and negative currency effect, positive trend in Q4
►
Operating EBITDA declined by EUR 1.8 m in 2015,
2014 included approx. EUR 1 m higher gains from the
disposal of idle assets
Analyst Presentation
Page 18
Central Products & Services
►
Revenues in this segment only include part of the
components business – majority of components sales
were accounted for in the other reporting segments
►
Overall positive development on Group level with
PICTURE (Factory)
growth of 1.7% in 2015, KPI increased like-for-like by
3.0% from EUR 2.37 per m2 to EUR 2.44 per m2
Analyst Presentation
Page 19
Contents
►
Highlights and key figures 2015
►
Operating results by reporting segments
►
Consolidated financial report
►
Outlook 2016
Analyst Presentation
Page 20
P&L
Summary consolidated income statement
(EUR million)
Q4 2015
Q4 2014
2015
2014
318.4
303.6
1,256.7
1,211.3
50.3
47.0
196.8
195.4
15.8%
15.5%
15.7%
16.1%
21.9
21.2
87.3
90.7
0.5
0.3
1.1
0.9
Operating income
28.9
26.1
110.6
105.6
Non-operating result
11.9
8.6
13.0
9.2
Earnings before interest and taxes (EBIT)
40.8
34.7
123.6
114.8
Finance result
-7.8
-20.2
-41.6
-58.2
Earnings before taxes (EBT)
33.0
14.5
82.0
56.6
-11.1
-3.0
-26.8
-16.8
22.0
11.6
55.1
39.8
0.2
0.1
0.1
-0.1
21.8
11.5
55.1
39.9
Revenues
Operating EBITDA
in % of revenue
Depreciation and amortisation
Result from associates
Income taxes
Profit (loss) for the period
Minorities
Group share of profit
Page 21
Revenue and Operating EBITDA development in 2015
Like-for-like
-0.4%
EUR m
Revenue
bridge
1,211.3
2014
13.6
1,224.9
FX
2014 (lfl)
-18.0
11.7
Volume (Tiles ASP (Tiles +
+ Chimneys) Chimneys)
1.5
1,220.1
Other
2015 (lfl)
36.7
1,256.7
Scope
2015
Like-for-like
-2.9%
EUR m
11.7
Operating
EBITDA
bridge
195.4
2014
1
2.3
FX
incl. Change-in-stock effect of EUR -2.1 million
197.7
2014
(lfl)
-6.8
Volume
(Tiles +
Chimneys)
-8.7
-1.8
ASP (Tiles + Variable
Fixed Costs
Chimneys) Costs (Tiles and Other
+ Chimneys)
Result1
4.8
196.8
Scope
2015
192.0
2015
(lfl)
Page 22
Strict control of fixed costs maintained
(EUR million)
451
+1%
452
391
170
368
383
372
148
140
148
143
172
280
280
243
228
235
229
2011
2012
2013
2014
2015
2015**
Fixed Production Costs*
Fixed SG&A Costs*
* Excluding depreciation and amortisation
** excluding Cobert and GCI
►
Fixed costs since 2011 reduced substantially through restructuring programme
►
Culture of strict cost control preserves operating leverage for recovery
Page 23
Balance sheet
Summary Group balance sheet
(EUR million)
31 Dec 2015
31 Dec 2014
Goodwill and intangible assets
285.3
277.2
Property, plant and equipment
639.7
617.4
19.6
13.8
944.7
908.5
33.0
37.5
Receivables and other assets
129.9
134.0
Inventories
222.1
200.9
Cash and cash equivalents
183.4
180.9
4.4
2.1
1,517.5
1,463.9
145.6
91.3
1.5
1.6
Equity
147.0
92.9
Debt
518.7
513.5
Provisions
504.1
527.2
15.2
8.7
Operating liabilities
332.5
321.6
Total liabilities
1,517.5
1,463.9
Assets
Financial assets
Fixed assets
Deferred tax assets
Assets held for sale
Total assets
Equity and liabilities
Total equity attributable to the shareholders
Non-controlling interests
Deferred tax liabilities
Page 24
Financial leverage reflects seasonal pattern
►
Net Debt (in EUR m)
454
444
384
337
►
335
►
Dec 14
Mar 15
Jun 15
Sep 15
Dec 15
Gross Debt:
►
EUR 200 million Term Loan B
►
EUR 315 Million Senior Secured
Floating Rate Notes
Financial Leverage: Net Debt / EBITDA (LTM)
3.0
2.4 x
2.5
2.3 x
2.0 x
2.0
1.7 x
1.7 x
1.5
1.0
Dec 14
Mar 15
Jun 15
Sep 15
Uninterrupted improvement of
Net Debt and Financial Leverage
after seasonal peak in March
Financial leverage kept on last year‟s
level despite growth investments
Net Leverage of 1.7x well within
target range of 2.0x or below,
including acquisitions on a pro-forma
basis
Dec 15
Ratings:
►
Moody‟s: B1 (stable)
►
S&P: BB- (stable)
►
Received upgrade from S&P may
enhance our possibility to refinance in
the current business year
Page 25
Capex Development
67
100
63
►
58
60
60
50
►
60
80
40
70
30
Sustaining Capex 2015
incl. roll-over effect from 2014
90
52
51
Growth Capex in particular to
improve the industrial footprint
%
Capex (Cash Flow), EUR million
70
in Germany as well as
investment in development of
20
60
innovative tile with „Aerlox‟
10
4
0
2011
2012
Capex (Cash flow)
Growth Capex
Analyst Presentation
2013
2014
technology
0
2015
Capex % Sales
Capex % Depreciation
►
Depreciation includes two
relatively newer plants in France
Page 26
Cash flow
Page 27
Strong operational Cash Flow
EUR 82 million generated
from operating business
+82
EUR m
205 (1)
EUR 68 million spent
on growth and
shareholder returns
-60
-43
-68
-21
-12
263
-4
-52
(1)
(2)
-12
195
181
Cash
Cash flow Sustaining Interest /
Dec 2014
from
Capex
Pensions
operations
EUR 12 million spent
on other finance,
legacy provisions
and special projects
Tax
Dividend
Including EUR 10 m additional factoring agreements in the UK, Spain and Portugal
Including EUR 10 m legal settlement
Growth
Capex
M&A
0
Other
Finance
-12 (2)
183
Legacy
Cash
Provisions Dec 2015
and Special
Projects
Page 28
Contents
►
Highlights and key figures 2015
►
Operating results by reporting segments
►
Consolidated financial report
►
Outlook 2016
Analyst Presentation
Page 29
Lead indicators New Build
►
►
Building permits show positive
trend in France, Germany and
the UK
Italy continues to stay flat at a
very low level
Analyst Presentation
►
►
Consumer sentiment regarding
purchase and new build very
strong in the UK and visibly
improving in France
At least flat in Germany
and Italy
Page 30
Positive European new build market expected 2016
(Residential NB Pitched Roof Market, view BMBG, 2015-2016)
Europe:
Asia:
Asia:
Asia:
South Africa:
Legend:
> 1%
-1% < 0 < 1%
< -1%
Page 31
Lead indicators Renovation
►
►
General consumer confidence
around zero in the UK, Italy
and Germany
Trend improving in Italy and
France, weakening in Germany
►
►
Analyst Presentation
Consumer sentiment regarding
home improvements broadly
stable in the UK, improving in
France and slightly declining in
Germany recently
Italy with some weakening
after improvement in 2013
and 2014
Page 32
Mixed RMI market expected in 2016
(Residential RMI Pitched Roof Market, view BMBG, 2015-2016)
Europe:
Asia:
Asia:
Asia:
South Africa:
Legend:
> 1%
-1% < 0 < 1%
< -1%
Page 33
First Outlook 2016
►
►
Like-for-like revenues expected to grow by 2% to 3%
►
Driven by growth in European tile volumes
►
ASP to increase slightly to cover increasing input costs
On top, first-time inclusion in full of acquisitions in Malaysia, Denmark and Italy
expected to provide another 2% to 3%of revenue growth and
approx. 4% in Operating EBITDA growth
►
Sustaining Capex of approx. EUR 65 million
►
Approx. EUR 5 million to be invested in growth projects in FY 2016
►
Expected legacy and non-recurring cash-outs in 2016 of approx. EUR 10 million
►
Aerlox and WrapTec provide additional revenue and earnings potential
from 2016 and 2017 on
Analyst Presentation
Page 34
Financial calendar and contact information
02 March 2016
Preliminary results 2015
31 March 2016
Publication of the Annual Report 2015
04 May 2016
Three-Month Results for 2016
11 May 2016
Annual General Meeting, Luxembourg
03 August 2016
Half-Year and Second Quarter Results for 2016
02 November 2016
Nine-Month and Third Quarter Results for 2016
Contact information
Achim Schreck
Director Group Communications / Investor Relations
Phone:
Email:
+49 (0) 6171 612859
[email protected]
Analyst Presentation
Page 35
Disclaimer
This presentation contains forward-looking statements relating to the business, financial performance and results of Braas
Monier Building Group S.A. (the “Company”) and/or the industry in which the Company operates. The words "anticipate",
"assume", "believe", "estimate", "expect", “foresee”, "intend", "may", "plan", "project", "should" and similar expressions are
used to identify forward-looking statements. Forward-looking statements are statements that are not historical facts; they
include statements about the Company‟s beliefs and expectations and the assumptions underlying them. These statements
are based on plans, estimates and projections as they are currently available to the management of the Company. Forwardlooking statements therefore speak only as of the date they are made, and the Company undertakes no obligation to update
any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on the
Company‟s management's current expectations and are subject to a number of factors and uncertainties that could cause
actual results to differ materially from those described in the forward-looking statements. Actual results may differ from those
set forth in the forward-looking statements as a result of various factors (including, but not limited to, future global economic
conditions, changed market conditions affecting the building material industry, intense competition in the markets in which we
operate and costs of compliance with applicable laws, regulations and standards, diverse political, legal, economic and other
conditions affecting our markets, and other factors beyond our control).
This presentation is intended to provide a general overview of the Company‟s business and does not purport to deal with all
aspects and details regarding the Company. Accordingly, neither the Company nor any of its directors, officers, employees or
advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance
should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or
implied. Neither the Company nor any of its directors, officers, employees or advisors nor any other person shall have any
liability whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this
information or its contents or otherwise arising in connection therewith.
This presentation speaks as of its date and the material contained in this presentation reflects current legislation and the
business and financial affairs of the Company which are subject to change and audit.
Analyst Presentation
Page 36